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Ratling [72]
3 years ago
12

An oligopoly firm is similar to a monopolistically competitive firm in that both firms face the prisoner's dilemma. both firms a

re in industries characterized by an interdependent firm. both firms have market power. both operate in a market in which there are significant entry barriers.
Business
1 answer:
DerKrebs [107]3 years ago
8 0
An oligopoly firm is similar to a monopolistically competitive firm in that BOTH FIRMS HAVE MARKET POWER.
Market power refers to the ability of a company to increase and maintain price above the level that would prevail under competition. When market power is exercised, it usually leads to reduced output and loss of economic welfare. 
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zhannawk [14.2K]

Answer:

The answer is price, product, and advertising.

Explanation:

The market situation of a monopolistic competitor is made more complex than our simple revenue-and-costs graphs would suggest, because the firm in reality juggles three decisions: price, product, and advertising.

3 0
3 years ago
Apple is constantly striving to introduce new products into the marketplace. At the initial stage, Apple design teams are separa
Leviafan [203]

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Idea generation.

Explanation:

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Idea generation is the first stage of the new product development. In this stage, the company seeks for ideas for creating or developing new products.

Therefore, idea generation is the correct answer.

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3 years ago
What are the remains after the costs of running a business have been paidA. stockB. taxesC. profits
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3 0
3 years ago
Present value computation kerry bales won the state lottery and was given four choices for receiving her winnings. receive $400,
Mekhanik [1.2K]
Option 1: PV = $400,000
Option 2: Receive (FV) $432,000 in one year

PV = FV(1/(1+i)^n), where i= 8% = 0.08, n = 1 year

PV = 432,000(1/(1+0.08)^1) = $400,000

Option 3: Receive (A) $40,000 each year fro 20 years

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PV = 40,000{[1-(1+0.08)^-20]/0.08} = $392,725.90

Option 4: Receive (A) $36,000 each year from 30 years
PV = 36,000{[1-(1+0.08)^-30]/0.08} = $405,280.20

On the basis of present value computations above, option 4 is the best option for Kerry Blales. This option has the highest present value of $405,280.20

4 0
3 years ago
M&M Proposition I with tax implies that:
Savatey [412]

Answer:

D. A firm's weighted average cost of capital decreases as the firm's debt-equity ratio increases.

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